Management

reckonING NEED OF computeING: A PRIMARY OBJECTIVE OF ANY depressed government IS TO MAXIMIZE ITS INCOME BY ATTAINING THE HIGHEST VOLUME OF SALES AT THE LOWEST POSSIBLE COST, PLANNING AND CONTROL ARE essential IN ACHIEVING THIS GOAL AND BUDGETING PRODUCES THE FRAME WORK BY WHICH governing CAN REACH THIS OBJECTIVE. ➢ CONCEPT: “A BUDGET IS A DETAILED PLAN WHICH SHOWS THE CONSEQUENCES OF AN ORGANIZATION’S OPERATING ACTIVITIES FOR A SPECIFIED PERIOD OF TIME.” OR “THE BUDGET IS A monetary mystify THAT SUMMARIZES THE FUTURE trading operations OF THE debauched AND IS OFTEN VIEWED AS AN grave COMPONENT OF AN ORGANIZATION’S PLANNING SYSTEM.” OR “A vicenary EXPRESSION OF A PLAN OF follow up THAT SHOWS HOW A FIRM OR ORGANIZATION WILL attain AND USE RESOURCES over SOME SPECIFIED PERIOD OF TIME.” ➢ BUDGETING seem: “THE ACTIVITIES AND PROCEDURES UNDERTAKEN TO DEVELOP BUDGE T.” ➢ PURPOSES OF BUDGETING: THE BUDGETING PROCESS CAN NORM totallyY SERVE following(a) FIVE PURPOSES. 1. PLANNING 2. FACILITATING discourse AND COORDINATION 3. ALLOCATING RESOURCES 4. CONTROLLING PROFIT AND OPERATIONS 5.

EVALUATING PERFORMANCE AND PROVIDING INCENTIVES TYPES OF BUDGET THERE ARE fundamentally 2 TYPES OF BUDGET 1) overlook BUDGET/ (STATIC BUDGET)/ ANNUAL BUDGET 2) fictile BUDGET 1. headmaster BUDGET: “ IS A COMPREHENSIVE lay OF BUDGET THAT COVERS ALL ASPECTS OF A FIRM&r squo;S ACTIVITIES. THE BUDGET IS PREPARED FO! R A SINGLE LEVEL OF VOLUME ground ON solicitude BEST ESTIMATE OF THE LEVEL OF proceeds AND SALES FOR THE approach shot PERIOD. ➢ COMPONENTS OF MASTER BUDGET MASTER BUDGET COMPRISES OF TWO COMPONENTS a. OPERATING BUDGET b. FINANCIAL BUDGET a. OPERATING BUDGET: ▪ A BUDGET THAT RELATES TO THE OPERATING ACTIVITIES (INCOME STATEMENT) OF THE BUSINESS....If you craving to get a full essay, order it on our website: OrderCustomPaper.com

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